Vince McMahon is out at WWE.

The wrestling legend tendered his resignation as the Executive Chairman of TKO, the company that owns WWE ... just a day after an explosive lawsuit was filed by a former WWE staffer, alleging McMahon sexually assaulted her on numerous occasions.

78-year-old McMahon released a statement reiterating his innocence with respect to the disturbing allegations but would step down because it's the best move for the wrestling promotion he built decades ago.

"Out of respect for the WWE Universe, the extraordinary TKO business and its board members and shareholders, partners and constituents, and all of the employees and Superstars who helped make WWE into the global leader it is today, I have decided to resign from my executive chairmanship and the TKO board of directors, effective immediately."

McMahon was not running the day-to-day operations for WWE ... but still had a prominent role within TKO. TKO Group Holdings has owned WWE since its purchase in 2023.

Curent WWE president Nick Khan announced the news to his employees late Friday, sending an email to the staffers.

"[Vince McMahon] has tendered his resignation from his positions as TKO Executive Chairman and on the TKO Board of Directors. He will no longer have a role with TKO Group Holdings or WWE," Khan wrote.

The massive shakeup comes after a federal lawsuit was filed in Connecticut on Thursday by Janel Grant ... where she claimed she was subjected to degrading sexual acts at the hands of Vince.

Amid the allegations, Grant accused McMahon of defecating on her during a threesome in 2020.

She says the situation left her "miserable and enraged," though she didn't leave because "in her years of experience with McMahon, she knew her requests to stop would be ignored at best or used to destroy her career and reputation at worst."

Ultimately, Grant claimed McMahon distanced himself from her in early 2022 after his wife Linda McMahon became aware of their alleged relationship.

Some time after, McMahon, according to Grant, agreed to pay her $3 million in exchange for signing a non-disclosure agreement, but she says he failed to pay the full amount.

McMahon has claimed the allegations contained in the lawsuit are meritless, calling the suit "replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth."

Former WWE executive John Laurinaitis was also named in the lawsuit.

Story developing ...